Return to 1958 and build a century-old giant

Chapter 827 The First Hong Konger to Appear on the Cover of Time Magazine
The matters in the United States have not been fully resolved yet, but Yang Wendong has already reached strategic cooperation agreements with these companies. He has also authorized his team in the United States to handle the remaining matters.
After waiting for a week, the first tranche of $3 million in loans from Citibank was disbursed. Of this, $2.51 million was deposited into Chrysler's account in the joint presence of Yang Wendong, Chrysler CEO Leah Iacocca, and Citibank CEO Walter. Yang Wendong also acquired 19.99% of Chrysler's equity at the same time.
In addition to this equity stake, there is also an executive director seat on the board of directors, with actual voting rights, which is granted by law. Yang Wendong also arranged for someone to join the board of directors, but according to the agreement with Iacocca, this person is only responsible for understanding the company's movements and reporting to Yang Wendong in Hong Kong. In terms of investment, this person will fully cooperate with Iacocca.

Another $5000 million was allocated, of which $3000 million went to Drexel Burnham Lambert to allow Milken to invest in junk bonds, and the remaining $2000 million was left untouched until the next $3 million arrived, at which point further plans would be made.
As for Chrysler's 336 car dealerships, the review process will take a long time due to the large number of stores. Yang Wendong is not in a hurry, but Iacocca is. He also hopes to complete the transaction as soon as possible so that his company will have more funds.

Of course, Chrysler wasn't just selling these stores; it also sold its military industry, its European Chrysler automotive business, its Australian and South American automotive business, real estate, leasing business, and even its headquarters building.
Large heavy industrial groups can make huge profits when things are going well, but once the market fluctuates, the losses can be terrifying. Historically, the Tung family in Hong Kong owned a large number of ships and could be considered part of the heavy industry sector. However, they almost went bankrupt when the maritime crisis hit, and all the profits they earned between 67 and 75 were almost lost.
“It’s a pleasure doing business with you both,” Walter said with a smile. Citibank had landed a big deal this time.

Yang Wendong smiled and said, "It's a pleasure to cooperate with you."

Walter continued, "We'll be having a dinner party tonight at the Waldorf Hotel; you two shouldn't miss it."

“No problem, I’ll be there on time,” Yang Wendong readily agreed, and Li Aikeka, who was standing next to him, echoed the same sentiment.

Several hundred million dollars is an astronomical figure in this era. The three major groups have completed such a large transaction, and they should celebrate with champagne.

After the Citibank business was concluded, Yang Wendong and the others returned to their car. Once they were alone, Yang Wendong said to Lin Youtian, "Youtian, arrange the funds to continue acquiring Chrysler shares."

"You're still going to make acquisitions? So you're going to make acquisitions covertly?" Lin Youtian asked.

Generally speaking, the U.S. Department of Commerce wouldn't interfere with investments, but Chrysler is a core U.S. company.

The premise for the U.S. Department of Commerce's decision not to interfere is that Chrysler will not relinquish more than 20% of its shares. If it does, it will trigger an investigation, and even if the investigation is eventually approved, it will take a long time, which is something neither Chrysler nor its own side wants to see.

Yang Wendong nodded and said, "Yes, it's a covert acquisition. This is purely an investment for me. I have no interest in holding the existing shares long-term."

In the United States, some companies are still worth holding for the long term, but the automotive industry is not. No matter how the oil crisis develops in the future, the American automotive industry has been on a downward trend.

On the one hand, American domestic industry is hollowing out; on the other hand, American labor unions are too powerful, and even automotive giants have repeatedly failed to defeat them in their struggles.
Lin Youtian agreed, "Okay, I know what to do, but we don't have much money left, unless we raise funds from other places."

"We'll just acquire a few this year, and I'll take care of the funding next year," Yang Wendong said with a smile.
Too much money has been invested in gold futures this year, so there are financial difficulties in all aspects. If this year wasn't the best time to invest in Chrysler, he wouldn't be in such a hurry. If Chrysler had received $15 billion from Congress and he had invested it himself, they might not have agreed.

Fortunately, Best Buy's financing provided substantial collateral; otherwise, Yang Wendong would have had a real difficulty raising several hundred million dollars.

Once the gold futures losses are recovered by the end of this year or the beginning of next year, my financial problems will be solved, and I may even have more money. Chrysler stock may be a little better next year than this year, but it will still be far from its peak a few years from now.

The following evening, Yang Wendong arrived at the Waldorf Hotel on time. Citibank was holding a grand banquet there, and had invited many financial colleagues and media reporters.

Yang Wendong now knows several people from banks such as Goldman Sachs, Bear Stearns, and Morgan Stanley. He has also gotten to know others he didn't know before, through Walter's introduction.
Wall Street's financial circles are now very interested in Yang Wendong, an Asian self-made capitalist whose assets in the United States are growing larger and larger, and the American companies he invested in in his early years are now very successful, such as Intel, Apple, Nike, Walmart, etc., which makes them even more envious.

Barney, an old acquaintance of Goldman Sachs, approached Yang Wendong, raised his glass, and asked with a smile, "Mr. Yang, I wonder if your KFC would be willing to raise funds?"

"A traditional industry like this? You're interested in it too?" Yang Wendong asked with a smile.

Barney laughed and said, "Why not? As long as we can make money, that's fine. KFC is already the largest fast food chain in the United States, but its coverage across the country is still far from enough. I think if we can get more funding, we can expand even faster, right?"

Yang Wendong said, "KFC will raise funds, but not now."

Although KFC is profitable on its own, it cannot expand rapidly by relying solely on its own profits. Therefore, Yang Wendong allocates funds to it separately every year.

However, many industries require funding, and Red Bull is a major money-making machine, so the resources allocated to KFC cannot be unlimited.

Even so, it still managed to become the number one fast food restaurant in the United States, which is already a success for Yang Wendong.

Barney continued, "Several of KFC's competitors, McDonald's, Burger King, Wendy's, and Subway, have already gone public. After going public, they have obtained a lot of funds, and it is also much easier for them to get loans."
As for KFC, I assume you're still receiving funding from overseas? This model is actually unhealthy, so I hope you can reconsider it soon. Goldman Sachs is also very willing to invest.

“You’re absolutely right, I’ll think about it.” Yang Wendong smiled. “If I need financing, Goldman Sachs will be my first choice.”

The biggest advantage of going public, besides the funds obtained during the IPO, is that you can make money in the stock market by profiting from retail investors. Some people even make more money from the stock market than from their main business, like the future Liu.

Another aspect is the binding of interests. After going public, companies can bind many shareholders and investors. Many non-US companies list in the US to bind US shareholders. In this way, if their businesses in other parts of the world are treated unfairly, the Americans may step in.

Another advantage is that after listing, it will be much easier to get bank loans and financing because the company has been recognized by the market.

This is why most companies worldwide are publicly listed.

Yang Wendong will certainly not lack funds in the future, but his KFC mainly makes money in the United States, and he will also invest globally in the future, so eventually he will have to go public. Only in this way can he maximize his profits and attract enough allies. Anyway, this kind of company does not need to use his prophetic abilities; it is purely a matter of capital investment. "Okay." Barney smiled and then asked, "Eric, you also have a large number of car retail stores in Asia. Now you are preparing to acquire Chrysler. Are you planning to build such a retail chain group on a global scale?"

Yang Wendong nodded and said, "Yes, that's the plan."

There's no point in hiding this; it doesn't matter if others know. Anyone can participate, the market is big enough, and we're not afraid of competitors.
And most importantly, it is the future domestic market. But even if he publicly says that he will invest in China on a large scale, I'm afraid no one present will follow suit. In the 80s, foreign investment in the mainland was mainly exploratory. Those who really made big investments made huge profits in the future, such as Volkswagen.

Barney then asked, "What about the European market? Are you interested?"

"Do you know any European groups that are interested in selling?" Yang Wendong asked in return.

Barney shook his head and said, "Not at the moment, but if you are interested and want to entrust us with this project, we will contact European groups."

As you know, we investment banks are very happy to facilitate any deal.

“Okay, if you can find a suitable one, I can cooperate with you,” Yang Wendong agreed.

In the early stages, his acquisitions and investments were all targeted, so he could simply arrange for people to negotiate.

However, as his group grew, many businesses could not be helped by his prophetic abilities. For example, the expansion of this retail business could only be achieved through his own operations.

He now has car retail center businesses in Asia and the Americas, but there is still no space in Europe. There are quite a few companies like this in Europe, but it would be too time-consuming for him to search for them one by one, check information, and communicate with them individually. Even if he were to screen them on his own, he might not be able to find the right one.

At this point, investment banks are needed. Investment banks like Goldman Sachs and Morgan Stanley are very good at this kind of business. As long as you tell them what type you want, their resources and channels can find the right one for you globally.
Everyone has their own area of ​​expertise. These investment banks have connections, knowledge, and political resources that far surpass those of one's own. Cooperating with them is also a good approach.

As long as one can quickly achieve their strategic goals, paying these investment banks some intermediary fees is worthwhile.

Barney laughed and said, "Okay, so how large do you need it for, or which of the many countries in Europe do you prioritize?"

"In terms of scale, it would be best if it were similar to Chrysler's, or even a little larger," Yang Wendong thought for a moment and said, "As for the country, we would prioritize developed countries in Western Europe, but Northern Europe would also be fine."

Barney exclaimed in surprise, "Larger than Chrysler's retail stores? Eric, you've got quite the ambition."

"Haha, it's alright, everything is negotiable. Actually, a smaller one is fine too, and I can gradually integrate these resources," Yang Wendong added.
Once he cashes out his gold futures, his global automotive retail center business will be one of the key areas for his investment.

Barney nodded and said, "I understand. I'll go back tonight and spread the word, and contact my colleagues in Europe."

"By the way, besides car retail centers, there are also European cinema chains. I've been thinking about that too; you can look into it," Yang Wendong added.

His current investments in the retail sector include car retail, cinemas, and Carrefour supermarkets.

Carrefour supermarkets face significant challenges in expanding into Europe and America due to the complexity of supermarket management.
His daily retail business in Europe and America mainly relies on investments, such as Walmart and Auchan and Metro in Europe; Carrefour's core business in the future will still be in mainland China and the Asian region.

However, movie theaters and car retail centers, whose merchandise consists of movies and cars, are much easier to manage.
Moreover, one of the core goals of these two retail industries is to cooperate with the film and automobile industries. In addition, they are profitable themselves, and even if electric vehicles rise in the future, they will still need retail stores to sell them.

"Theatrical releases? Great, the more collaborations I have, the better," Barney laughed.

Yang Wendong said, "Then I hope we can have new collaborations soon."

Even if Goldman Sachs is quick, it's unlikely they'll find a target in a short time, and even if they do, negotiations will take some time, meaning it could be early next year, which is just the right timing.

The acquisition of nearly 20% of Chrysler, one of the Big Three American automakers, by Asian capital has caused a huge sensation in the American financial and media markets.

Although it wasn't an acquisition, Yang Wendong, a Hong Konger, had already become Chrysler's largest shareholder, which surprised countless Americans, who also began to take an interest in Yang Wendong.

Some media outlets, following their clients' demands, thoroughly investigated Yang Wendong's background, revealing how he built a vast business empire across Asia in just 20 years, starting from scratch in Hong Kong in 1958 and encompassing manufacturing, real estate, shipping, food and beverage, and cultural media.
After reading the newspapers, the American public learned that Red Bull, KFC, and Best Buy belonged to Yang Wendong, a Chinese man, and that star American companies such as Intel, Apple, Nike, and Walmart had also received investment from him.

His ability, vision, and history of starting from scratch immediately earned him the admiration of countless people;
In fact, by comparison, this person's abilities are even stronger than Jobs'.

On August 16, Yang Wendong's photo was officially featured in Time magazine.

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(End of this chapter)